So the adjuster finally comes after more than 2 weeks. Drying has been complete. The adjuster inspects for an hour or so. Then goes off for 2-3 hours to complete a report. Comes back with the report and writes a check on the spot.
Gotcha #1: If the amount is >$7500 the check is made out to the Mortgage company as well.
What does this mean?
When you dig into this, each mortgage company has different rules.
Our mortgage is with CitiMortgage. You hunt and hunt on their website, try some phone numbers and get a call center in India. They give you a web address of http://www.mylossdraft.com/ with a pin of cm001. If you put in ch001, you get Chase mortgage.
According to the mylossdraft website, for CitiMortgage--if the amt is <$10K, send them the check (do not endorse it), and they will endorse and send it back. If the amt is >$10K, you endorse the check and send it to them. They put it into escrow.
You send them a whole list of documents:
Your current mailing address and phone number, and loan number.
[Loss Summary Worksheet] (Required only when contractor is being used for repairs.)
List of repairs from Insurance Company (Adjustor's Worksheet)
A signed copy of the Contractor's Contract
Paid Receipts, required only when the Homeowner is making the repairs
[Statement Of Self Contracting] (Required only when Homeowner is making the repairs)
[Conditional Waiver of Lien]
[Certificate of Intent to Repair]
[Certificate of Completion of Repairs] (To be signed only when repairs have been completed)
Then they send you 1/3 or 1/2 the money.
When the work is about complete, the MortgageCompany will send out an inspector to verify, before sending the rest of the money.
So why do they do it this way? Something about the mortgage company having an interest in the property being fixed properly. If the work is not done and verified, you don't get any money. If your contractor does it for a lesser amt, escrow will only pay that amount. If your contractor estimates it costs more, you go back to the adjuster to negotiate.
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www.nationalcitymortgage.com/downloads/Loss%20Claim%20Procedure%20Checklist.pdf
ReplyDeletethis document shows a do-it-yourself option
http://www.surfrate.com/homeowners-insurance-guide/homeowners-insurance-claims-repairs-and-rebuilding.html
ReplyDeleteHomeowners Insurance Claims Settlement Payment
After your insurance company agrees to pay your claim, it generally has five days to make the settlement payment.
If, like most homeowners, you have secured your mortgage with a lien against the property in your lender’s name, a large settlement payment will in most cases be made to you and your Mortgage Company collectively per the terms and conditions of most mortgage loans. This is intended to assure your lender
that your home is brought back to good condition and the value of your property is kept intact.
If your payment is made out to you and your lender, you will need to get their endorsement and, depending upon their policies and the guidelines specified by your state’s bank regulators, may or may not agree to release the funds until a satisfactory inspection of the repairs is completed.
Check with your lender to get details on how they process insurance claims settlement payments and remember that they will be just as eager as you to see the repairs or rebuilding completed as quickly as possible.
In most cases your lender agrees to make deposit and progress payments directly to your contractor(s) as the repairs or rebuilding progress using a “direction to pay” form, in which case your contractor(s) bill the insurer.
It is important that you fully understand how this process works and do not sign off on any work until you are satisfied that work has been completed according to the estimate and specifications of the contract(s).
If your policy covers replacement cost for personal belongings, generally you will be required to replace stolen, damaged or destroyed items prior to receiving payment from your insurer; they want to be sure you actually replace the items and not simply pocket the cash. Most insurance companies allow several months for you to replace items but check with your company to be sure you understand the process and time limit.
http://knol.google.com/k/taylor-asfar/insurance-claims-residential/jm17d5cz6aw3/2#The_Process
ReplyDeleteI am a property and casualty insurance claims adjuster licensed in Texas and Florida. I've been an adjuster for many years now, and have worked hurricane Rita, Katrina, Wilma, and Dennis, along with many wind and hail storms all across the US. I have also worked non catastrophe claims such as sewage backup, and pipe leaks and breaks. I have been on thousands of roofs, and inspected thousands of claims, and 90% of the "insureds" as adjusters call them, are uninformed about how the basic process works, and what to expect from it. This article is meant to touch on the basics of insurance claims, and claims adjusting.
Most of the examples below are using State Farm as the insurance company only because they have the most residential claims in the United States.
Contact the National Association of Public Insurance Adjusters. This trade organization, which represents 110 of the industry's largest firms, maintains a searchable database of members who have at least two years of experience and uphold a professional code of conduct, according to David W. Barrack, the group's executive director. In addition, the organization also offers a certification program. Adjuster must have at least 10 years of experience and pass a more rigorous test.
ReplyDeletePublic Adjusters
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